British Minister plans to subsidize EV loans to promote sales

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The British Minister is formulating plans to ensure consumer loans to subsidize purchase of electric vehicles because they have studied the way to promote stubborn sales lower than official goals.

Government and industry data said that the government has conducted private discussions with the automobile financial department to try to increase the availability of low interest rates or non -interest loans to help improve the use of electric vehicles.

It is said that a choice to discuss is to insure private sector loans to reduce monthly repayment to help bring the purchase cost of electric vehicles to the level closer to gasoline or diesel vehicles.

This will be welcomed by the automotive industry. The industry has been trying to sell electric vehicles required by government goals, and it will force people to admit that consumer subsidies abandoned in 2022 have been eliminated prematurely.

Although the direct purchase price of electric vehicles is still expensive compared to traditional engine -driven cars, according to the financial and leasing associations, more than 80 % of new cars in the UK were purchased using financial or leasing transactions.

Automotive manufacturers have been urging ministers to take new demand measures to encourage consumers to buy more electric vehicles and speed up the launch of charging points.

The sales of British electric vehicles are growing, but it is still far lower than the official goals, and it is concentrated in the company's automotive industry, where there is still generous tax discounts.

Volkswagen, Ford, Renault and other automakers have undergone the pressure of the government's “zero -emission vehicle authorization” stretching goals, which requires that a certain percentage of each car manufacturer's annual sales vehicle is zero -emission vehicles.

The percentage will rise from 28 % this year to 80 % in 2030, and each missed vehicle will face a fine of £ 15,000.

Stellantis said last year that the cost part of the plan was the decision to close its Luxer's truck factory, so that 1100 jobs were in danger, and Ford also blamed the task. Because last year, 800 British characters were reduced in a wider range of European reorganization.

According to data from the Automobile Manufacturer and Trade Association, EVS accounted for 19.6 % of the new car sold in the UK last year than the required 22 % target.

The government is currently consulting the car industry about how to improve the “arrangement and flexibility” in the plan to try to provide more breathing space for manufacturers.

Due to the direct cost of the Ministry of Finance, the minister is unlikely to bring back cash rewards. The previous inserted car donation plan paid 5,000 pounds for EV, which decreased over time, and was eventually scrapped by the Conservative Government in 2022.

After the Labor Prime Minister Rachel Reeves was caught in the Supreme Court case to prevent the car financing department from paying billions of dollars to consumers, the potential intervention of electric vehicles was intervened.

The rise of monthly payment transactions purchased by cars has changed the country's automotive financing industry. The most popular financial transaction is called “personal contract purchase”, which is a monthly paid plan that allows drivers to provide funds for the value of the vehicle's loss within three years, not the total cost of the car.

Over the past two years, the collapse of the second -hand price of electric vehicles means that electric vehicles are usually higher than gasoline.

ADrian Dally, the financial director of FLA's auto financial, said zero -interest loans will not fully balance the costs between electric vehicles and internal combustion engines, but he added: “If the government has a way to undergo cheap loans. . That will be very helpful. ”

The impact of the plan on public finances will depend on how to build any support in Britain. The ministers hope that the changes in government debt goals are a new measure called “net financial liabilities of public sector”, which calculates more assets with public liabilities-can help the proposal.

A spokesman for the Ministry of Transport refused to comment on the FT report, but said that 2024 was “a record of turning to electric”, sold 382,000 EVS, and nearly 20,000 public chargers were added to the network.

“We have invested more than 2.3 billion pounds to support the industry, and consumers have changed.”